The proposed bill aims to incentivize the adoption of grid-connected residential battery energy storage systems in Washington State. It establishes a framework for qualified light and power businesses to create battery incentive programs approved by the Washington State University extension energy program. These programs will provide financial incentives to residential customers, particularly targeting low-income and moderate-income households, to encourage the installation of battery storage systems. The bill outlines specific definitions, eligibility criteria, and requirements for these programs, including the necessity for time-of-use rates and the integration of customer batteries into utility-operated virtual power plants.

Additionally, the bill introduces tax credits for light and power businesses that participate in these incentive programs, allowing them to offset the costs of incentive payments and related expenses. The tax credits are structured to encourage the installation of residential battery energy storage systems from July 1, 2026, to June 30, 2036, with a performance evaluation set for 2030 to assess the effectiveness of the incentives in achieving the desired outcomes, such as increased energy storage capacity and job growth in the clean energy sector. The bill also includes provisions for data collection and reporting to ensure accountability and transparency in the implementation of the incentive programs.